September 30, 2026
Mr. Warnock (for himself and Mrs. Britt) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to provide parity in the taxation of professional sports franchises under the limitation on the deduction for certain employee remuneration, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Establishing parity in taxation of professional sports franchises
(a) In general
Section 162(m)(3)(C) of the Internal Revenue Code of 1986 is amended to read as follows:
(C)
such employee is among the 5 highest compensated employees for the taxable year other than—
(i)
any individual described in subparagraph (A) or (B), or
(ii)
any individual who performs services in the field of athletics (within the meaning of section 1.199A–5(b)(2)(viii) of title 26, Code of Federal Regulations (as in effect on the date of the enactment of this subparagraph)) for the taxpayer, or
(b) Technical amendment
Section 162(m)(3)(D) of such Code is amended by inserting such employee
before was a covered employee
.
(c) Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2026.